U.S. Private Label Food and Beverages Market Surges with Innovation and Value Demand

U.S. Private Label Food and Beverages Market Size and Share

The U.S. private label food and beverages market size stood at USD 146.63 million in 2024 with projections indicating a rise from USD 163.93 million in 2025 to approximately USD 447.34 million by 2034, expanding at a CAGR of 11.8% throughout the forecast period from 2025 to 2034. The increasing product innovation and consumer trust drives the growth of the market.

Key Highlights

• By product type, the food segment held a major U.S. private label food and drink market share in 2024, driven by increasing demand for natural foods.
• By product type, the beverages segment is projected to grow at a CAGR between 2025 and 2034, driven by the growing beverage industry. 
• By distribution channel, the supermarkets and hypermarkets segment dominated the market share in 2024 due to the increasing consumer preference towards offline stores.
• By distribution channel, the e-commerce & DTC segment is expected to grow rapidly due to the increasing trend towards online shopping. 
• By consumer orientation, the budget-conscious consumers segment dominated the market share in 2024 due to the increasing consumer demand for budget-friendly food and beverages.
• By consumer orientation, the health-conscious shoppers segment is expected to grow rapidly due to the increasing consumer awareness towards health and well-being. 
• By label tier/price point, the value/basic tier segment contributed the biggest market share in 2024, due to the rising population of low-income groups.
• By label tier/price point, the premium tier segment is expanding at a significant CAGR between 2025 and 2034, due to the increasing demand for high-quality ingredients.

Industry Coverage

The Increasing Private Label Beverage Landscape in the U.S. Enhances Consumer Experience

The U.S. private label food and drink market refers to the segment of consumables sold under a retailer’s proprietary brand, rather than a national manufacturer. These products are manufactured by third-party contract manufacturers or vertically integrated in-house facilities and sold via retail channels, including supermarkets, hypermarkets, club stores, drugstores, and e-commerce. Driven by rising consumer trust, product innovation, and cost-conscious behavior, the private label market is steadily competing with national brands across all categories. 

Some of the significant factors driving the U.S. private label food and drink market are increasing consumer desire for value and differentiation, increasing consumer trust in retailer brands, and a focus on health and wellness. In addition, by offering unique packaging, formulations, and Flavors, private label drinks allow retailers to differentiate themselves from competitors.

Consumers are trusting retailer brands rapidly and providing quality products at reasonable prices, which may accelerate the demand for private label and the drink market in the U.S. The increasing consumer shift towards perception also drives the market growth. Furthermore, to cater to specific dietary preferences or needs, the demand for healthy drink options is increasing rapidly. Retailers can create private-label sugar-free and organic fortified drinks with minerals and vitamins are further expected to drive the growth of the U.S. private label and drink market.

U.S. Private Label Food and Beverages Market Trends

• Rising Customization and Innovation: Retailers are investing significantly in product customization and innovation to provide superior and distinctive private label drinks, which has contributed to propelling market growth.
• Rising Growth in E-Commerce: Due to the rapid expansion of e-commerce, retailers have to platform to sell and display their private label drinks directly to consumers, which is expected to drive the growth of the U.S. private label and drink market.
• Increasing Consumer Preference Towards Eco-Friendly Products: The increasing consumer focus towards eco-friendly and sustainable products may support small businesses, which is further expected to enhance the market growth in the U.S.

Market Opportunity

The Future of Private Label Innovation

The private label and drinks segment is expected for continuous innovation with increasing competition, as retailers strive to exceed and address expectations for ethically sourced, sustainable, and healthier products, which may create significant opportunities in the U.S. The various company leaders are contributing significantly to private brands and signaling a commitment to value and quality.

In addition, the rising integration of AI-generated product development also enhances market growth in the U.S. To improve supply chain, forecast trends, and design Flavors for private label drinks, companies are integrating data analytics and AI, which is further expected to revolutionize the growth of the U.S. private label food and drink market in the coming years.

Market Challenge 

Supply Chain Difficulties

The increasing difficulties in the supply chain may create major challenges in the manufacturing of private labels and drinks. To keep up a dependable and steady supply chain for private label ingredients, it can be challenging for consumers, particularly those who are entering new markets. The challenges may increase from matters such as quality control, logistics, and sourcing, which may further restrain market growth. In addition, limited product differentiation, economic downfalls, quality control, and restricted advertising and marketing budgets are further expected to hinder the growth of the U.S. private label and drink market.

The Private Label and Drink Market Trends in the U.S.

The market growth in the U.S. is attributed to the increasing consumer awareness towards health and wellness, increasing growth in e-commerce platforms, increasing use of the internet and smartphones, and increasing demand for high-quality products.

• In April 2024, “bettergoods”, the private label brand, was launched by Walmart in the U.S. This brand involves brand-new quality drinks which is sold at affordable costs. Under the other private label brands, such as Sam’s and Great Value, the retailers also provide sports drinks and sodas, which may accelerate the demand for U.S. private label and the drink market. (Source: Storebrands)

The online retailer Amazon provides private-label drinks under various house brands, including Amazon Fresh and Happy Belly. The consumer demand for affordable store brands is increasing as inflation has soared in the U.S. The private label and drinks sales in the U.S. grew by over 45 billion in 2023. Approximately 70% of adults are expected to purchase private label products in the coming year, according to the research from Mintel, which is further expected to drive the growth of the private label and drink market in the U.S.

Segmental Insights

Product Type

How Food Segment Dominates U.S. Private Label Food and Drink Market Revenue in 2024?

The food segment dominated the U.S. private label food and drink market in 2024. The segment growth in the U.S. market is attributed to factors such as increasing flexibility in food consumption, increasing brand loyalty, cost-effectiveness, and increasing consumer demand for natural, organic, and unique food products. In the U.S., private label foods account for 18%. Consumers are continuously looking for diverse and unique food products that enhance their food preferences and tastes. By offering high-quality products, private labelling helps companies to build their brand quality, which enhances the consumer experience. The private labelling enables businesses to enhance products’ packaging and branding, which is further expected to enhance the segment growth in the U.S.

• In June 2025, chairman and interim chief executive officer, Ronald Sargent, launched Kroger Co.'s Plans that support healthier eating habits of consumers. The aim behind this launch was to add 80 new protein-focused food products to its Simple Truth organic and natural brand. (Source: Food Business News) 

The Beverages Segment is Expected to Grow Fastest During the Forecast Period. 

The segment growth in the U.S. private label food and drink market is attributed to factors such as increasing consumer focus on health and wellness, enhanced brand loyalty, responsiveness and flexibility, and higher profit margin. Retailers can improve brand loyalty among their consumers by offering high-quality beverages. To create custom packaging, flavours, and formulations, retailers can potentially work with the beverage industry. In addition, focusing on market trends and changing consumer preferences, retailers have greater flexibility with private-label beverages. Furthermore, private label beverages offer significant opportunities for targeted promotional and marketing campaigns, which further drive segment growth.

Distribution Channel Insights

Why Supermarkets and Hypermarkets Segment Held the Largest U.S. Private Label Food and Drink Market Revenue in 2024?

The supermarkets and hypermarkets segment dominated the U.S. private label food and drink market in 2024. The segment growth in the market is driven by factors such as increasing consumer preference towards offline stores, improved operational efficiency, greater understanding of buyer behavior, increasing product discoverability, and increasing consumer desire to shop physically without waiting for delivery. In addition, the major advantages of supermarkets driving market growth are accessibility, promotional schemes, variety, and availability.

In June 2025, the 24-layer Chocolate Cake, ‘Matilda’, was Launched by Supermarkets, Which is Inspired by Bruce Bogtrotter.

The e-commerce & DTC segment is expected to grow fastest during the forecast period. The segment growth in the U.S. private label food and drink market is driven by the increasing consumer awareness towards health and wellness, increasing busy and modern lifestyles, increasing rapid growth in e-commerce platforms, and increasing the need for smartphones and internet penetration. In addition, the Direct-to-Consumer (DTC) model revolutionizes how products are consumed and procured in the beverage industry. Furthermore, enhanced profit margins, rich consumer insights, and empowered brand control are the potential benefits of DTC, which is further expected to drive segment growth.

Consumer Orientation Insights

What Factors Help Budget-Conscious Consumers Segment Grow in 2024?

The budget-conscious consumers segment dominated the U.S. private label food and drink market revenue in 2024. The segment growth in the market in the U.S. is attributed to the growing rapid nuclear families and urbanization, increasing demand for everyday and basic beverages, increasing penetration of retail channels, increasing consumer trust in private labels, and increasing product prices in food and beverages.

The Health-Conscious Shoppers Segment is Expected to Grow Fastest During the Forecast Period. 

The segment growth in the U.S. private label food and drink market is attributed to the increasing consumer demand towards health and nutrition, increasing range of diverse consumer needs, increasing consumer preference towards plant-based options and functional beverages, rising innovation in technology integration and smart packaging, and demand for ready-to-drink beverages.

Label Tier / Price Point Insights

How Value/ Basic Tier Segment Dominates U.S. private label food and drink market Revenue in 2024?

The value/basic tier segment dominated the U.S. private label food and drink market in 2024. The segment growth in the U.S. market is propelled by the increasing consumers’ food purchasing behavior, rapid urbanization, increasing consumer preference towards consistent taste and quality improvements, increasing demand for necessary drinks, and rising cost of inflation and living. 

The Premium Tier Segment is Expected to Grow Fastest During the Forecast Period. 

The segment growth in the U.S. private label food and drink market is attributed to the increasing modern and busy lifestyles, rising innovation in ingredients, increasing consumer preference towards clean label packaging and sustainability, and increasing demand for functional drinks and wellness. In addition, the premium tier plays an important role in attracting quality-conscious consumers, driving segment growth, and elevating perception, which is further expected to enhance the segment growth in the U.S.

Recent Developments in the U.S. Private Label Food and Beverages Market

Generous Brands

• Launch: In October 2024, leading brands in the fresh beverage produce market, Generous Brands, announced the launch of beverage innovations. These new beverages comprise a Bolthouse Farms Super Smoothie platform, the new flavors of the Generous Brands “White Label” Program, SAMBAZON Açaí juice, and Evolution Fresh Real Fruit Sodas. (Source: BEVNET)

bp

• Launch: In April 2025, the Epic Good private label is launched by the bp across its retail brands, ampm in the U.S. The new assortment includes packaged beverages, salty snacks, chocolates, and gummy candies. (Source: Storebrands)

U.S. Private Label Food and Beverages Market Leading Companies

• Costco Wholesale (Kirkland Signature)
• Walmart (Great Value, Sam’s Choice, Marketside)
• Kroger (Private Selection, Simple Truth)
• Target (Good & Gather, Favorite Day)
• Aldi (Simply Nature, Fit & Active)
• Trader Joe’s (Private brand portfolio)
• Whole Foods (365 by Whole Foods Market)
• Sam’s Club (Member’s Mark)
• Publix (Publix Brand, GreenWise)
• Albertsons/Safeway (Signature Select, O Organics)
• H-E-B (Hill Country Fare, H-E-B Brand)
• Meijer (Meijer Brand, True Goodness)
• CVS (Gold Emblem, Just the Basics)
• Walgreens (Nice!, Finest Nutrition)
• Amazon (Happy Belly, Amazon Fresh)
• Thrive Market (Private organic label)
• Wegmans (Wegmans Brand)
• Hy-Vee (That’s Smart!, Hy-Vee Private Label)
• 7-Eleven (7-Select)
• Sprouts Farmers Market (Sprouts Store Brand)

Segments Covered in the Report

By Product Type

• A. Food 
  • Shelf-Stable Foods
  • Canned vegetables, beans, and legumes 
  • Pasta, rice, and grains 
  • Sauces, condiments, spreads
• Frozen Foods 
  • Vegetables, fruits
  • Ready meals, pizzas, entrees 
  • Ice cream, frozen desserts 
• Dairy 
  • Milk (whole, skim, lactose-free) 
  • Cheese (cheddar, mozzarella, specialty)
  • Yogurt, cream, butter 
• Bakery 
  • Packaged breads, buns 
  • Cakes, muffins, cookies 
• Snacks
  • Chips, popcorn, pretzels
  • Nuts, trail mix, protein bars
• Pet Food 
  • Dry and wet dog food
  • Cat food and treats
• Baby Food
  • Purees, cereals, toddler snacks
• Organic & Natural Foods
  • USDA-certified organic shelf items
  • Clean label, no preservatives

B. Beverages 

• Non-Alcoholic 
  • Juices, flavored waters, soda
  • Functional beverages (electrolyte, botanical, adaptogenic)
• Dairy-based Beverages
  • Flavored milk
  • probiotic drinks
  • Plant-based milk (almond, oat, soy)
• Coffee & Tea 
  • Ground coffee, pods, instant 
  • RTD teas, cold brew 
• Alcoholic Beverages
  • Store-brand beer and wine
  • Ready-to-drink cocktails
• Infant Formula
  • Generic formulas with iron
  • DHA-enriched

By Distribution Channel

• Supermarkets & Hypermarkets
  • Kroger
  • Albertsons
  • Publix
  • Target
• Discount Retailers   
  • Walmart
  • Aldi
  • Dollar General   
• Club Stores   
  • Costco,   
  • Sam’s Club   
• Convenience Stores   
  • 7-Eleven, Circle K   
• Drugstores   
  • Walgreens,   
  • CVS,   
  • Rite Aid   
• E-commerce & DTC  
  • Amazon Fresh
  • Thrive Market
  • retailer-owned apps 

By Consumer Orientation   

• Budget-Conscious Consumers   
  • Families,   
  • low-income groups,   
  • bulk-buying households   
• Health-Conscious Shoppers   
  • Seeking organic,   
  • gluten-free,   
  • plant-based options 
• Premium-Oriented Buyers 
  • Looking for small batch
  • clean label
  • functional foods
• Pet Owners & Baby Boomers   
  • Focused on pet nutrition
  • health products 

By Label Tier / Price Point

• Value/Basic Tier
  • Everyday low-cost essentials (e.g., Great Value by Walmart) 
• Mainstream Tier 
  • Quality store brands (e.g., Good & Gather by Target) 
• Premium Tier 
  • Specialty organic/gourmet lines (e.g., Private Selection by Kroger, 365 by Whole Foods)